The news: A vast majority of advertisers are seeing notable results from agentic AI-powered solutions, especially within walled gardens, per a Taboola report.

• 76% of advertisers said they have seen meaningful performance gains from AI-powered solutions, mainly those in walled gardens.
• 80% said they would immediately increase spending on the open web if comparable agentic solutions existed; 86% would be willing to allocate up to a quarter of their performance budget.
• But some advertisers still struggle with agentic solutions: 74% of large advertisers (spending $1 million to $4.9 million monthly) say integration is the biggest roadblock to AI adoption.
• Only 9% of smaller advertisers (spending $300,000 to $499,000 monthly) said the same.

Zooming out: Rapid AI innovation is accelerating walled gardens’ prominence in digital advertising strategies—and the open web is falling behind without similar solutions.

• US walled garden programmatic digital display ad spending will increase 19.6% this year to $177.36 billion, per our forecast.